With increasing pollution, sedentary lifestyles, and little to no time being spent on wellness, health insurance has become an important component of all our lives. An adequate health insurance cover can be extremely helpful in times of emergencies. Not just financial freedom and better peace of mind, but health insurance also offers great tax* saving benefits.
Here’s some useful information that can help you save some tax from your health insurance.
Section 80D of the Income Tax Act
The Indian government offers benefits to citizens with health insurance. Here’s how you and your family can avail them:
- For yourself, spouse and dependent children: Under Section 80D of the Income Tax Act, 1961, insured citizens under the age of 60 can avail a deduction of up to ₹ 25,000 from taxable income in a financial year on health insurance premiums paid for self, spouse and dependent children. If the age of insured is 60 years or more, the deduction limit increases to up to ₹ 50,000 in a financial year
- For parents: You can claim an additional tax* benefit of up to ₹ 25,000 for the health insurance premium paid for your parents. The limit increases to ₹ 50,000 if your parents are 60 years or older
- For Hindu Undivided Family (HUF): HUFs can avail tax* deduction for all members of the family. However, the overall limit for the entire family cannot exceed ₹ 25,000
Tax* saving health insurance plans by ICICI Prulife
With ICICI Pru Heart/Cancer Protect plan, you can get a cover of up to ₹ 20 lakh for two of the most common health concerns of our times: heart and cancer ailments. The ICICI Pru Heart/Cancer Protect plan comes at a premium of only ₹ 176^ per month.
How to claim benefits under Income Tax Act on health insurance premium paid?
Here are some important things to note while claiming benefits:
- You will need a copy of your insurance policy and a payment receipt of the premiums paid in the financial year
- Both these documents should specify your name
- In case you are availing benefits for a spouse, child, or parent, make sure the documents specify their names
- For cash payments: As per government rules, you can only avail tax* deduction for health insurance premiums that are paid via cheque, demand draft, credit card, and internet banking under Section 80D. If you pay your insurance premiums in cash, you will not be able to avail the deduction. However, cash payments for preventive check-ups can be done to avail deduction under Sector 80D
- For group health insurance: You cannot claim tax* deduction for group health insurance policies. Only individual health insurance policies are covered under Section 80D
Being insured is extremely important for ensuring your wellbeing as well as that of your loved ones. Make sure that you get one as soon as you can for all the members of your family. It not only offers tax* saving, but will also provide a financial stability in case of health emergencies.
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* Tax benefits under the policy are subject to conditions under Section 80D, 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above
^ The above mentioned premium rate is for ₹ 10 Lakh Cancer Cover and ₹ 10 Lakh Heart Cover for a 30 year old healthy male for a policy term of 5 years. The total single premium amount will be ₹ 6,223. If you choose monthly mode, then the premium amount works out to ₹ 176 inclusive of taxes
ICICI Pru Heart Cancer Protect UIN